Merchant Fees Already deducted.

Esh84
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Merchant Fees Already deducted.

Hi,

 

I run a shopify website and their merchant fees are already taken out, before the money hits my account. When I ran AccountRight I had a clearing account setup for the and cant seem to get my head around working it out now. 

 

I want to accept payment fully to the invoice then deducte the fees from there, not change the customers invoice.

 

Thanks 

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MYOB Moderator Neil_M
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Re: Merchant Fees Already deducted.

Hi @Esh84 

 

It is possible to set up a clearing account within MYOB Essentials, just as you had within AccountRight. You can create a new account by clicking on your company menu in the top right hand corner >> Accounts List >> Add New. This will allow you to add a new account, and for clearing accounts the type will need to be either bank or credit card.

 

Once this clearing account has been created then you will be able to use the same process as you did in AccountRight

Regards,
Neil

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Ultimate Partner DuncanS
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Re: Merchant Fees Already deducted.

@Esh84 @Neil_M 

 

The ATO requires all Assessable Income to be reported.

It would be incorrect to change the Invoice Amount.

Suffice to say the Net Profit would be the same.

 

Some Clients accept PayPal on a irregular basis.

I receipt the Invoice then do a Spend Money for the PayPal Fee.

 

Duncan

Duncan Smith
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Esh84
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Re: Merchant Fees Already deducted.

Thanks for that Neil,

 

I have tried to do that but  cant get to this screen which is not in essentials. Thats how I worked it all out before.

 

 

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Esh84
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Re: Merchant Fees Already deducted.

Hi Duncan,

 

Yes I was horrified when I sore that people thought changing the invoice was the way to do it.

 

75% of my transactions are shopify/paypal so I was hoping to be able to do it the way I used to, especailly to make bank rec easier. 

 

The way I used to do it in Account right was alot tidier. I might look at upgrading to that as essentials doesnt seem work well with my online store.

MYOB Moderator Neil_M
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Re: Merchant Fees Already deducted.

Hi @Esh84 

 

As MYOB Essentials doesn’t have the functionality to do deposit adjustments, theres not a similar screen as the one in your screenshot.

 

That said you would be able to use a journal entry to move the amount from a clearing account to the bank account as well as impacting the expense account to track the merchant fees. In terms of how the journal entry should look I’d recommend speaking with your accountant, however you could prepare a sample deposit in your AccountRight file and then recap the transaction to get a sample journal entry

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Neil

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Ultimate Partner DuncanS
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Re: Merchant Fees Already deducted.

@Esh84 @Neil_M 

 

Visa/Mastercard and Amex take a monthly amount around month end.

I have a recurring Spend Money.

 

PayPal takes the fee on each transaction making Accounting much more difficult.

You could have a recurring Spend Money for the PayPal fee.

A lot of work involved - one wonders if PayPal will end up taking a monthly fee.

 

Duncan  

Duncan Smith
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Esh84
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Re: Merchant Fees Already deducted.

Hi Duncan,

 

I am just applying the payment straight away and splitting it between the accounts, with essentials it seems to be the easiest solution.

 

It is such a pain.

 

If the business continues to grow I will have to upgrade my software.

 

Thanks for your help.

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Experienced Cover User Rie
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Re: Merchant Fees Already deducted.

Hi @Neil_M 

 

We have recently started using Shopify and have a clearing account in MYOB Accountright that is linked via OneSaas. But I can't find any notes on how to reconcile the clearing account that shows the full amount paid on the shop vs the Shopify amount that is paid into our bank account less the fees.  Are you able to advise or direct me??

 

Thank you

 

Rie

Ultimate Partner DuncanS
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Re: Merchant Fees Already deducted.

@Rie @Neil_M 

 

Rie,

 

Lots to think about when the Merchant takes their fees and pay you the net amount.

It is much easier when the Merchant takes a monthly amount ie Visa/Mastercard and Amex.

 

A Bank Reconciliation can be performed as the net amount has been deposited by the Merchant.

 

The question then arises how the Merchant fee are accounted for in MYOB.

I would setup a ledger called Merchant Fees - Shopify.

Please advise whether Shopify charges GST on the Merchant Fees (I understand Visa/Mastercard and Amex do).

Shopify would/should issue a Tax Invoice or Invoice stating the amount of Merchant Fees and any GST- this may happen monthly - please confirm that this is the case.

 

I would do a monthly Journal Debiting Merchant Fees - Shopify and crediting Sales - Shopify.

 

Let us know.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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